Correlation

1.A computer whole calculating the correlation coefficient between the variables X and Y
obtain the following result:
N=30, X=120, Y=90, XY=335, X2=600, Y2=250,
It was, however, later discovered at the time of checking that it had copied down two
pairs of observations as
x
y
While the correct values
were
8
10
x12
y7
8
12
10
8
Obtain the correct value of the correlation coefficient between the variables X and Y.
2. An office contains 9 officers. The long serving officers feel that they should have a
seniority increment based on length service built into their salary structure. An assessment of
their efficiency by their department manager and personnel department produces a ranking of
efficiency. This is shown below together with a raking of their length of services. Do the
data support the officers, claim for seniority increment?
Ranking according
to length of services:
1
2
3
4
5
6
7
8
9
Ranking according
to efficiency
:
2
3
5
1
9
10
11
8
7
3. A company gives on-the-job training to its salesmen which are subject to a test. The
company terminates the service of its salesmen who do not do well in the test.
The following data give the test scores and sales made by nine salesmen during the last
one year:
Test scores
:14
19
24
21
26
22
15
20
19
Sale (Tk. 000) :31
36
48
37
50
45
33
41
39
Compute the correlation of coefficient between test scores and sales. Does it indicate that
termination of the services of salesmen with low test scores is justified?
4.Following figures give the rainfall in inches for the year and the production in 00s of kfs.
for the Rabi crop and Kharip crop. Calculate the Karl Pearsons coefficient of correlation,
between rainfall and total crop:
Rain fall
:
20
22
24
26
28
30
32
Rabi Production :
15
18
20
32
40
39
40
Kharif Production :
15
17
20
18
20
21
15
5. Calculate the correlation coefficient between age and playing habits of the following
students and comment on it. Also calculate the probable error:
7
Age
:12
13
14
15
16
No. of students
:250 200
120
150
100
Regular players
:200 150
48
90
50

6.The city corporation in Bangladesh is considering increasing the number of police in an

effort to reduce crimes. Before taking a final decision, the corporations council has asked the
chief of the police commissioner to survey the entire city corporation to determine the
relationship between the police and the number of crimes reported. The chief commissioner
gathered the following information:
5
City
Police
No of Crimes
Dhaka
15
17
Chittagong
17
13
Rajshahi
25
10
Khulna
27
7
Barishal
17
5
Calculate the correlation coefficient between the numbers of crimes and the numbers of
police and interpret.
7. The scores of students in an examination in Math. and Stat. is given below:
Students No
:
1
2
3
4
5
6
7
8
9
Marks in Math
:
70
48
58
55
54
50
60
52
40
Marks in Stat.
:
62
47
53
60
55
68
51
48
43
Calculate rank correlation coefficient between Mathematics and Statistics and compare
the two values.
Example-01: The supply and price of a market on one month are given below. Calculate
their coefficient of correlation.
Supply (in ton) 80
82
86
91
83
85
89
Price(per 10 146
140
130
117
133
127
115
kg)
Example -02: The following table shows the marks of Statistics and mathematics of 10
Students of BBA Department of UODA. Calculate the Rank correlation and comment on
your result.
Statistics
92
Mathematics 86

89
83

87
91

86
77

83
68

77
85

71
52

63
82

53
37

50
57

Example -03: Two teaching methods A and B are applied on 11 students and the required
numbers are given below. Find rank correlation coefficient.
Students
1
2
3
4
5
6
7
8
9
10
11
Marks of A
24
29
19
14
30
19
27
31
20
28
19
Marks of B
37
35
16
26
23
27
19
20
16
11
21
11. The number of Statistics and Mathematics of 8 students are given below. Calculate their
correlation
coefficient, Rank correlation and comment on your result.
Statistics
80
30
90
25
50
70
82
88
Mathematics
70
40
50
53
55
65
75
60

12. Following information shows the use of fertilizer and production of rice of eight
fields.
Calculate coefficient of correlation and comment on your result.

Fertilizer used (in kg)

10
15
20
25
30
35
Rice produced (in kg) 200 250
300 340 370
390
13. Following information shows the use of cigarette and probabilities
seven patients.
Calculate coefficient of correlation and comment on your result.
Number of cigarette
10
13
17
25
32
Probabilities of cancer.
20
24
30
38
44

40
45
400
405
of cancer of
35
49

40
55

Regression Analysis
1.

The following data give the ages and blood pressure of eight women.
Age(x)
:
56
58
64
67
79
Blood Pressure (y)
:
87
90
98
108
125
i.
Find the correlation coefficient between x and y.
ii.
Determine the least square regression equation of y on x
iii.
Estimate the blood pressure of a woman whose age is 45 years.

2.

After investigation it has been found the demand for automobiles in a city depends
mainly, if not entirely, upon the number of families of residing in that city. Below are
given figures for the sales of automobiles in the five cities for the year 2010 and the
number of families residing in those cities:
City
A
B
C
D
E

No. of families in lakhs(x)

70
75
80
60
90

Sales of automobiles in 000 (y)

25
28
30
22
35

Fit a linear regression equation of y on x by the least square method and estimate the sales
for the year 2013 for city A which is estimated to have 100 lakh families assuming that the
same relationship hold true.
3.
Find the most likely production corresponding to a rainfall of 40 inches from the
following data:
Average
S.D
Correlation of Coefficient
4.

Rainfall
30 inches
05 inches

Production
50 quintals
10 quintals
0.8

The General sales manager of Kiran Enterprises-an enterprise dealing in the sales of
ready-made mens wears is toying with the idea of increasing his sales toTk.80000. On
checking the records of ales during the last year 10 years, it was found that the annual
sale proceeds and advertisement expenditure were highly correlated to the extent of 0.8.
It was further noted that the annual average sale has been Tk.45000 and annual average

advertisement expenditure Tk.30000, with a variance of Tk. 1600 and Tk.626 in

advertisement expenditure respectively.
In view of the above, how much expenditure of advertisement you would suggest the
General Sales Manager of the enterprise to incur to meet his target of sales.
5.

In a partially destroyed laboratory record of an analysis of correlation data, the following

results only are legible:
Variance of x=9
Regression equation=8X-10Y+66=0
40X-18Y=214
Find on the basis of the above information:
1. The mean values of X and Y.
2. Coefficient of correlation between X and Y.
3. Standard deviation of Y.

6.

A financial analyst has gathered the following data about the relationship between income
and investment in respect of 5 randomly selected families:
Income :
8
12
9
24
37
Percent :
36
25
33
15
19
Invested in securities

7.

Develop an estimating equation that best describes these data.

Find the coefficient of determination and interpret it.
Calculate the standard error of estimate for this relationship.
Find an approximate 90 percent confidence interval for the percentage of income
invested in securities by a family earning Tk.2500 annually.
The following information is collected from a super shop regarding their sales and
advertising expenditures in one year.

Ad. Expenditure (tk. Thousand)

Sales (tk. Thousand)
Average
50
100
Standard Deviation
36
25
Coefficient of Correlation
0.85
i.
Calculate two regression equations.
ii.
Estimate the approximate sales for a proposed advertisement expenditure of tk. 120.
iii.
What should be the advertisement budget if the company wants to achieve a sales
target of tk. 400 thousand?
8.

Catalogues listing text books were examined to discover the relationship between the cost
of a book and the number of pages it contains. The perusal gives the following data for
seven books:
Pages
Prices (Tk.)

:
:

40
10

45
14

50
18

55
20

60
22

65
25

70
30

What increase would you expect for a book if it is decided to increase the number of pages of
the book by 50?
9.

The following information is collected from a super shop regarding their sales and
advertisement expenditure of one year (300 working days are considered one year).
Sales (TK. Thousand)

Arithmetic Mean
Standard Deviation
Coefficient of Correlation
i)
ii)
iii)
iv)
10.

Advertisement Expenditure
(TK. Thousand)
5
12

98
23
0.91

Calculate total sales and total advertisement expenditure of one year.

Find two regression equations
Estimate the approximate sales for a proposed advertisement expenditure of TK. 7
thousand.
What should be the advertisement budget if the company wants to achieve a sales target
of TK. 150 thousand?
Following information shows the use of fertilizer and production of rice of eight fields.

a) Estimate two regression lines and comment of your results.

b) What will be the estimated rice production for 60 of fertilizer?
c) If one wants to get 600 of rice production calculate the approximate fertilizer to use.
Fertilizer used (in kg)
Rice produced (in kg)
11.

10
200

15
250

20
300

25
340

30
370

35
390

40
400

45
405

You are given the following data about rain fall and production of rice of 35 fields.
Arithmetic Mean
Standard Deviation
Coefficient of Correlation

Rain fall (cm)

26.7
4.6

Production (kg)
5084
36.8
Rxy = 0.52

Calculate two regression lines. Estimate the production of rice if rain fall is 22cm and
estimate the rainfall if the production is 600 kg.
Example 02: The following information is collected from a super shop regarding their sales
and advertisement expenditure of one year (300 working days are considered one year).

Arithmetic Mean
Standard Deviation
Coefficient
Correlation
i)
ii)

Sales (Tk.
thousand)
98
23
of

Advertisement Expenditure (Tk.

Thousand)
5
12
0.91

Calculate total sales and total advertisement expenditure of one year.

Find two regression equations

iii)
iv)

Estimate the approximate sales for a proposed advertisement expenditure of Tk. 7

thousand.
What should be the advertisement budget if the company wants to achieve a sales
target of Tk. 150 thousand?

v)

8. Following information shows the use of fertilizer and production of rice

of eight fields.
vi)
a) Estimate two regression lines and comment of your results.
vii)
b) What will be the estimated rice production for 60 of fertilizer?
viii)
c) If one wants to get 600 of rice production calculate the approximate
fertilizer to use.
Fertilizer used (in 10
15
20
25
30
35
40
45
kg)
Rice produced (in 200
250
300
340
370
390
400
405
kg)
ix)

9. You are given the following data about the sales and Advertisement expenditure
of one year (300
x)
working days) of a firm.
Sales (Tk.
Advertisement Expenditure (Tk.
Crores)
Crores)
Arithmetic Mean
50
10
Standard Deviation
10
2
Number Days
300
Coefficient of Correlation
0.9
xi)
a) Calculate Total Sales and total Advertisement expenditure of the year.
xii)
b) Calculate two regression equations
xiii) c) Calculate Coefficient of Regression of sales on advertisement expenditure and
comment.
xiv) d) Estimate the approximate sales for a proposed advertisement expenditure of
Tk. 13.5 crore.
xv)
e) What should be the advertisement budget if the company wants to achieve a
sales target of Tk.
xvi)
70 crore?
xvii) 10. You are given the following data about rain fall and production of rice of 35
fields.
Rain fall (cm)
Production (kg)
Arithmetic mean
26.7
5084
Standard deviation
4.6
36.8
rxy 0.52
Coefficient of correlation
xviii)
Calculate two regression lines. Estimate the production of rice if rain fall is
22cm and estimate the
xix)
rainfall if the production is 600 kg.
Time Series Analysis

1. Below are given the figures of production (in thousand quintals) of a sugar factory
Year
:
1990 1991 1992 1993 1994 1995 1996
Production :
80
90
92
83
94
99
92
( in ooo qtl)
Fit a straight line tend to these figure.
Plot these figure on graph and show the trend line.
Estimate the likely sales of the company during 2000.
Eliminate the trend. What components of the Time Series are thus left over?
What is the monthly increase in the production of sugar?
2.Below are given the figures of production (in million tones ) of a cement factory
Year
:
1990 1992 1993 1994 1995 1996 1999
Production :
80
90
92
83
94
99
92
( in ooo qtl)
Fit a straight line tend to these figure.
Plot these figure on graph and show the trend line.
Estimate the likely sales of the company during 2000.
Eliminate the trend. What components of the Time Series are thus left over?
What is the monthly increase in the production of sugar?
3.The working capital requirements of the XYZ Ltd. Have been subject to seasonal
fluctuations. At the same time, a steady secular advance can be noted. In oder to evaluate
comprehensively future working cpital needs, the treasure calculated a straight line trend
and the seasonal indices. The trend equation is Y=10000=500X, where X represents a
period of 1 month and has a value of 0 in 2000. The seasonal indices are as follows:
Jan.
Feb.
Mar.
Apl.
May.
June.

80
July 125
95
Aug. 99
90
Sep. 90
100
Oct. 102
116
Nov. 105
120
Dec. 87
Prepare a schedule of estimated working capital requirements for 2001.
What factor could cause these estimates to be incorrect?
What might be done to compensate for inaccuracies as they become apparent?
Would you as a banker have any interest in estimates of this type?

4.The sale of a commodity in ton varied from January 2005 to December 2005 in the
following manner:
Month
Sales( inton)
Month
Sales( inton)
Jan.
280
July
225
Feb.
300
Aug.
210
Mar.
290
Sep.
290
Apl.
250
Oct.
210
May.
216
Nov.
205

June.
220
Dec.
280
Fit a trend by the method of semi-average.
Fit a trend by the method of 3 or 4 monthly moving average.
5.Compute a nonlinear trend of the form Y=a+bx+cx2 for the data showing the production
of wheat ( in thousand tones) during the years 1992 to 2000.
Year
:1992 1993 1994 1995 1996 1997 1998 1999 2000
Production
: 9
10
12
15
13
10
8
16
15
of wheat(in ton)
Probability
1.A sample survey conducted in four cities pertained to preference for brand A soap. The
response is shown below:
Dhaka
khulna
Rajshahi
Noakhali
Yes
:
35
40
55
60
No
:
20
30
25
45
No response :
04
06
02
05
What is the probability that a customer selected at random
6
Does not preferred brand A.
Preferred brand A and was from Dhaka.
Given that he preferred brand A, what is the probability that he was from khulna?
Preferred brand A given that he was from Dhaka.
2. Two balance dice, one is black and the other is red, are thrown and the number of dots on
their upper faces are noted. Let b be the outcomes of the black die and r be the outcomes
of the red die. Find following probabilities:
7
P(b=2r), P(b=odd number, r=4), P(b+r=14), P(b+r=5, br=6)
3. From a lot of 20 items containing 3 defective, a sample of 5 items is drawn at random. Let
the random variable X denote the number of defective items in the sample. Answer the
probability P(0X<2).
5
4. The data for the promotion status and academic qualification regarding 300 employees of a
company is as follows:
Hsc.
BBA
MBA
Promoted
:
10
30
45
Not promoted :
90
70
55
One employee is selected at random. What is the probability that5
i.
He is a BBA.
ii.
He is promoted/ he is an MBA
iii.
He is not promoted/ he is a Hsc
5. A press has two printing machines. From past records it is known that machine A produces
40% of the total output and machine B produces rest of the output. Moreover, 5% of the
produced output from machine A and 15% of the produced output from machine B are
defective. If a defective item is drown at random, calculate the probability that it is produced
i. From A
ii. From B
From Aor from B.

6.In a city 45% of the population are female. It is known that 25% of the females and 35% of
the males are unemployed. A research student studying the employment situation selects an
unemployed person at random. What is the probability that the person selected is
i. Male
ii.Female
7. A manufacturing firm produces steel pipes in three plants A, B and C with daily
production volumes of 500, 1000 and 2000 units respectively. According to past experience
it is known that the fractions of defected output produced by the three plants are 0.005,
0.008 and 0.010 respectively. A pipe is selected from a days total production.
i. Find out the probability of selecting the pipe from plant A, B and C.
ii.What is the probability that the selected pipe will be defective?
iii.If the pipe is defected then find the probability that it has been produced by the
plant A.
8. In a factory ,machine A produces 30% of the total output and machine B produces rest of
the output. On the average 20 items out of 1000 produced by A are defected 2 items out of
200 produced by B are defected. An item is drawn at random from a days output is found to
be defected. What is the probability that was produced by A? or B?
9. In a university, male and female graduates from 80 percent and 20 percent, respectively in
a year. After publication of the result, a survey on those graduates is conducted and found
that 60 percent male graduates and 80 female graduates are assured a job. A graduate is
randomly selected and found that he is a male. Find the probability that (i) he is assured a
job. (ii) he is not assured a job.
Example: A man goes to his office by bus or by baby taxi. The probabilities of using bus and
baby taxi are 0.6 and 0.4 respectively. If he uses bus, there is 25 percent chance of facing
accident. The chance is 50 percent. If he uses baby taxi, One day he faces an accident. What
is the probability that he uses bus?
Example: In an office 60% are male employees. The probability of getting promotion of a
male is 0.80 and that is for female is 0.60. One is selected for promotion. What is the
probability that the selected one is a female?
Example: In a university 70% students are from city centre and 30% are from outside city.
Among the students of city centre 90% wear ties. The corresponding percentage among
students outside city is 50%. Find the probability that a student wears a tie comes from out of
the city.
b. In a post office, three clerks are assigned to process incoming mail. The first clerk A,
process 40% of the mail, the second clerk B, process 35% and the third clerk C process 25%
of the mail. The first clerk has an error rate of 4%, the second has an error rate of 6% and the
third has an error rate of 3%. A mail selected at random from a days output is found to be an
error. The Post Master wishes to know the probability that the mail was processed by the first
clerk. What is the probability that the mail was processed by the clerk A or B.
Example 01: A candidate is selected for interview for three posts. For the first post there 3
candidates, for the second post there are 4 and for the third post there are 2 candidates. What
is the chance of getting at least one post?

Example 02: An MBA applies for a job in two firms x and y. The probability of selecting in
firm x is 0.7 and the probability of rejecting from firm y is 0.5. The probability of at least one
his applications being rejected is 0.6. What is the probability that he will be selected at least
in one of the firms?
Example 04: A manufacturing firm produces steel pipes in three plants A, B and C with daily
production volumes of 500, 1000 and 2000 units res0pectively. According to past experience
it is known that the fractions of defected output produced by the three plants are 0.005, 0.008
and 0.010 respectively. A pipe is selected from a days total production.
i) Find out the probability of selecting the pipe from plant A, B, or C.
ii) What is the probability that the selected pipe will be defected?
iii) If the pipe is defected then find the probability that it has been produced by the plant
A.
Example 05: Two computers A and B are to be marketed. A salesman who is assigned the
job of finding customers for them has 60% and 40% chances respectively of succeeding in
case of computer A and B. The computers can be sold independently. Given that he can able
to sell at least one computer, what is the probability that computer A has been sold?
1. The following table shows 1000 nursing school applicants classified according to scores
made on a
college entrance examination and the quality of the high school from which they graduated
as rated by
a group of educators.
Quality of high school
Poor (P)
Average (A) Superior (S)
Total
High (H)
105
60
55
220
Scores Medium (M)
70
175
145
390
Low (L)
25
65
300
390
Total
200
300
500
1000
a) An applicant is picked up at random from this group. Find out the following probability.
i) Made a low score on the examination
ii) Graduate from the superior high school and made medium score.
iii) Made a low score on the examination and graduated from the average high school.
iv) Made medium score under condition of coming from average high school.
v) Graduated from superior high school under condition that made a high score.
2. A committee of 4 peoples is to be appointed from 3 officers of the production department,
4 officers
of purchase department, two officers of the sales department and 1 chartered accountant.
Find the
probability of forming the committee in the following manner:
i)
There must be one from each category.
ii)
It should have at least one from the purchase department.
iii)
The chartered accountant must be in the committee.
3. A salesman has a 60% chance of making a sale to each customer. The behavior of
successive

customers is independent. If two customers A and B enter, what is the probability that the
salesman
will make a sale to A or B?
4. The chance that doctor A will diagnose a disease X correctly is 60%. The chance that a
patient will
die by his treatment after correct diagnosis is 40% and the chance of death by wrong
diagnosis is
70%. A patient of doctor A, who had disease X, died, what is the chance that his disease
was
diagnosed correctly?
5. In a factory, machine A produces 30% of total output and machine B produces 70%. On
the average
20 items out of 1000 produced by A are defected and 2 items out of 200 produced by B is
defected.
An item is drawn at random from a days product is found to be defected. What is the
probability that
it was produced by A? Or B?
6. In a bolt factory machines A, B and C manufacture respectively 25%, 35% and 40% of the
total. Of
their output 5%, 4% and 2% are defected bolts. A bolt is drawn at random from a days
product.
i) What is the probability that the bolt is defected?
ii) If the bolt is defected what is the probability that is was manufactured by machine
B?
7. Two factories A and B manufacture the same machine part. Each part is classified as
having either 0,
1, 2 or 3 manufacturing defects. The joint probability distribution for this is given below:
Number of Defects
0
1
2
3
Factory A
0.1250
0.0625
0.1875
0.1250
Factory B
0.0625
0.0625
0.1250
0.2500
A part is observed.
i) What is the probability that it was produced by factory A?
ii) What is the probability that it has no defects under condition that it is produced by
factory A?
iii) What is the probability that it is produced by B under condition that it had more than
one
defects?
iv) What is the probability that it is produced by A under condition that it has more than
three
defects?
8. A company has two plants to manufacture scooters. Plant-1 manufactures 80% of the
scooters, and
plant-2 manufactures 20%. At plant-1 85% scooters are rated as standard quality. At plant2 only 65%

scooters are rate as standard quality. i) What is the probability that a customer obtains a
standard
quality scooter if he buys a scooter from the company? ii) What is the probability that the
scooter
came from plant-1 it is known that the scooter is of standard quality?
9. An insurance company insured 2000 scooter drivers, 4000 car drivers and 6000 truck
drivers. The
probability of their accident is 0.1, 0.3 and 0.2 respectively. One of the insured persons
meets with an
accident. What is the probability that he is a scooter driver?
10. A candidate is selected for interview of management trainees for 3 companies. For the
first company
there are 12 candidates, for the second company there are 15 candidates and for the third
company
there are 10 candidates. What is the chance of his getting job at least one of the
companies?

Normal Test
Problem 1:
In a study on growth of children, one group of 100 children, had a mean height of 60 cm and
SD of 2.5 cm while another group of 150 children had a mean height of 62 cm and SD of 3
cm. is the difference between the two groups statistically significant?
Problem 2:
In a nutritional study, 100 children were given a usual diet and vitamins A and D tablets.
After 6 months, their average weight was 30 kg with SD of 2 kg while the average weight of
the second comparable group of 100 children who were taking the usual diet only was 29 kg
with SD of 1.8 kg. Can we say that vitamins A and D were responsible for this difference?

1. A sales man purchases 20 bulbs of Philips and 30 bulbs of Osram. He finds that
Philips bulbs have an average life of 1500 hours with a variance of 3600 hours and
Osram has given an average life of 1512 hours with a variance of 6400 hours. Is there a
significance difference in the mean life time of the two types of bulbs? Use 5% level of
significance.
2. In a sample of 1000 persons from the village of Dhaka, 660 are found to be consumer of
rice and the rest consumers of wheat. Can it be concluded that both the food articles are
equally popular? Use 5% level of significance.
3. A soap manufacturer wanted to know what percentage of the citizens of Dhaka uses his
soap. He conducted a survey and found that out of 500 persons selected at random for the
purpose, only10% use his soap. He spent Tk.5 lakh on an advertisement campaign to attract
more customers. In order to know the result of his campaign he conducted another survey

and found that out of 600, 15% are using his soap. Do you think that the expenditure has
really increased the percentage of citizens of Dhaka using his soap?
4. In North Dhaka out of a random sample of 500 households, 25% declared that they were
regular readers of The Daily Star. In South Dhaka the proportion in a sample of 600 was
30% . Is there a significance difference in the two proportions?
5. A firm found with the help of a sample survey of a city (size of a sample of 900) the 3/4th
of the population consumers things the goods produced by them. The firm then advertised the
goods in paper and radio. After one year, a sample of size1000 reveals that proportions of the
goods produced by the firm are 5/4th. Is this rise significant to indicate that the advertisement
was effective?
6. In a certain factory there are two independent processes manufacturing the same item. The
average weight in a sample of 250 items produce from one process is found to be 120gm
with s.d. of 12gm, while the corresponding figure in a sample of 400 items from the other
process are 124 and 14 gms. Is the difference between the mean weights significant at 5%
level of significance?
7. In a credit co-operative run by a large company it was found that during the past year, a
sample of 300 loans issued showed that 37% of the loans were made to women employees. A
similar study carried out on a sample of 400 loans 5 years ago showed that the proportion of
women employees seeking loans was 32%. Do these data give sufficient evidence to
conclude that more women employees are seeking recent year than before? Use 5% level of
significance.
8. Two research laboratories have independently produced drugs that provide relief to
arthritis sufferings. The first drug was tested on a group of 100 arthritis victims and produced
an average of 9 hours of relief with a variance of 9 hours. The second drug was tested on 75
patients producing an average of 8 hours of relief with a variance 4 hours. At a significance
level of 5%, does the first drug provide a significantly longer period of relief?
9. The average monthly income of 80 teachers in Dhaka City College is tk.20000 with
standard deviation tk.3000 per month while for 60 teachers in Dhaka Commerce College the
responding values are tk.22500 & 5000 respectively. Do the above data indicate any real
difference between the average monthly incomes of teachers in two colleges?
10.In a survey of buying habits, 400 women shoppers are chosen at random in Metro
shopping mall. Their average weekly food expenditure is tk.2500 with a standard deviation
of tk.40. For another group of 400 women shoppers are chosen at a random in Rapa plaza.
Their average weekly food expenditure is tk.2000 with a standard deviation of tk.55. Test at
1% & 5% level of significance whether the average weekly food expenditure of the
populations of women shoppers are equal.
11.A random sample from 200 villages was taken from Pabna district and the average
population per village was found to be 250 with variance 3600. Another random sample of
200 villagers from the same district gave an average population of 480 per village with
variance 3600. Is the difference between the averages of the two samples statistically
significant?
12. The quality control department of a food processing firm specifies that the mean net
weight per package of a certain food trust be 20 gm. Experience has shown that the weights
are approximately distributed with a standard deviation of 15 gm. If a random sample of 15
package yields a mean weight of 19.5 gm, is this sufficient evidence to indicate that the true
mean weight of package has decrease?

13. In a sociological investigation two groups of children drawn at random from

socioeconomic classes called A and B were classified as bright and non bright. Out of 200
children in the first group, 60 were found to be bright and out of 300 children in the second
group 70, were bright. Do the children belonging to the two classes differ significantly in
their intelligence? Use 5% level of significance.
T-test
1.Two laboratories A and B carry out independent estimates of fat content in ice-cream made
by a firm. A sample is taken from each batch, halved and the separate halves sent to the two
laborities are recorded below:
Batch No
:
1
2
3
4
5
6
7
8
9
10
Lab, A
:
3
5
7
3
8
6
9
4
7
8
Lab, B
:
9
8
8
4
7
7
9
6
6
6
Is there a significance difference between the mean fat content obtained by the two
laboratories A and B?
2. The mean weekly sales of the chocolate bar in general stores was 1463 bare per store.
After an advertising campaign the mean weekly sales in 22 stores for a typical week
increased to 157.7 bars and showed a s.d. of 17.2. Was the advertising successful?
3. A company desires to compare the effects on cavities of its brand A with a competitors
brand B. To eliminate some of the variation in test population pairs twins are used. Brand is
randomly assigned to each twin and is used for two years. The number of cavities developed
during the period is reported below:
Pair
:
1
2
3
4
5
Brand A
:
4
5
7
6
3
Brand B
:
3
5
4
2
1
Test at 5% level of significance weather the data indicate a difference in cavities developed
between the two brands.
4. Five persons were appointed in an office cadre in an office. Their performance was
recorded by giving a test and the marks were recorded out of 100. They were given two
months training and a test was held and the marks were recorded again out of 100. The
records were as follows:
Employee
: A
B
C
D
E
Before training
: 80
92
76
60
85
After training
: 84
96
70
80
80
By applying the t-test, can it be concluded that the employees have benefited by the training?
5. The increase in weight due to food A and food B given to two independent samples of
children was recorded as follows:
Food A
: 12 6
10
14
13
Food B
: 8 3
7
11
9
Test whether the means of the two samples are significantly differ or not.
Problem 3:
In a nutritional study, 13 children were given a usual diet plus vitamins A and D tablets while
the second comparable group of 12 children was taking the usual diet. After 12 months, the
gain in weight in pounds was noted as given in the table below:

Children on vitamins: 5 3 4 3 2
6
3 2
6 7 5 3
(Group-A)
Children on usual diet: 1 3 4 2
5 6
3 1 4 2 5 6
(Group-B)
Can we say that vitamins A and D were responsible for this difference?

Problem 4:
The erythrocyte sedimentation rate (mm/hour) of 15 male and 10 female TB patients before
state of the treatment is given below. (Data sampled from Tuberculosis Chemotherapy
Centre, 1956. bulletin of the World Health Organization 21, 51).
Males(X1):
65 60 115 82 43 103 125 118 83 75 90 95 128 65 84
Females(X2): 63 85 90 100 90 105 98 93 10 125
Examine the significance of the difference in the means.
Problem 5:
Systolic blood pressure (SBP) of 9 normal individuals, who had been recumbent for 5
minutes, was taken. Then 2 ml of 0.5% solution of hypertensive drug was given and blood
pressure recorded again. The data was as follows:
BP before injection : 112 121 120 115 126 130 120 125 128
BP after injection
: 120 118 115 110 122 130 116 124 125
Did the injection of drug lower the blood pressure?
Problem 6:
The weight of 10 tuberculosis patients on admission and at the end of 12 months of treatment
with PAS plus isoniazid daily, are given below. The data was sampled from a clinical trial
(Tuberculosis Chemotherapy Centre, 1959, Bulletin of the World Health Organization, 21,
51) which was as follows:
Weight in kg on admission
: 49 41 37 41 42 37 39 41 35 38
Weight in kg after 12 month
: 52 43 46 52 46 38 41 42 38 38
Examine whether the gain in weight is statistically significant.

Binomial Distribution
1. In an interview board the probability of selecting female or male candidate are equal. If
eleven candidates are present then what is the probability that maximum two male candidates
will be selected?
2. It is noticed that 30% of the officers of Pharmaceuticals Company in Dhaka city are from
MPharm Dept, UODA. Assuming that 200 investigators can take a sample of 10 individual
to see whether they are from UODA, how many investigators would you expect to report
that less than two were from UODA?

2. A survey reports that 40% of the officers at a company own car. Suppose six officers are
selected at random from this company
i. What is the probability that exactly four will own cars?
ii. What is the probability that at least one will own cars?
4.The incidence of occupational disease in an industry is such that the workers have a 35%
chance of suffering from it. What is the probability that out of eight workers at least two
workers will contact disease?
Example 01: A survey reports that 40% of the officers at a certain industry own cars.
Suppose six officers are selected at random from this industry (with replacement)
a) What is the probability that exactly four will win cars?
b) What is the probability that at least one will win car?
c) Example 02: In a blade factory 20% blades are defected. The blades are packed in a
packet of 20 blades. If one customer buys 10,000 packets find out his expected
number of packets regarding
d) i) No blade is defected; ii) Only one blade is defected, iii) Maximum two blades
are defected.
Example 03: The probability that a person of age 20 years will die within 15 years is 0.2. An
insurance company has insured 10 person of age 15 years. Calculate the following
probability
a) Nobody will die during next 15 years.
b) Two persons will die during next 15 years.
9. In an interview board the probability of selecting female or male candidate are equal. If 10
candidates
are present then what is the probability that a) at least two female candidates will be
selected.
10. 30% of the total bulbs produced by a company are defected. The bulbs are supplied in
a packed of
10 bulbs. If one buys 2000 packet then what is his expectation regarding a) No bulb will be
defected,
b) only one bulb will defected, c) Minimum one bulb will be defected.
11. A Binomial distribution has mean 4 and variance 4/3. Find its parameter and distribution
function.
12. If a coin is tossed 10 times, what is the probability of getting a) Head 3 times or more? b)
Minimum
one head? c) Maximum one head?
13. The probability that Bangladesh wins a cricket test match against Zimbabwe is given to
be 1/3. If
Bangladesh and Zimbabwe play six test matches, what is the probability that i)
Bangladesh will loss
all the six matches? ii) Bangladesh will win at least one test math?
14. In the long run 3 vessels out of every 100 are sunk. If 10 vessels are out, what is the
probability that
a) exactly 6 will arrive safely b) at least 8 will arrive safely?

15. The screws produced by a certain machine were checked by examining number of
defectives in a
sample of 7. The following table shows the distribution of 128 samples according to the
number of
defective items they contained.
a) Fit a binomial distribution and find the expected frequencies if the probability of a
machine being defective is b) Fine the mean and standard deviation of the fitted
distribution.
No of defective items
0
1
2
3
4
5
6
7
Total
(x)
No of samples
7
6
19
35
30
23
7
1
128

Poisson Distribution
1. 0.4% of total processors produced by a company are defective. A packet contains 200
processors. If a man buys 2000 packets then what is his expectation regarding
No processor is defective.
Two or more than two processor is defective.
2. On an average 4 in 200 items are defective. If the items are packed in boxes of 500, what
is the probability that any given box of items will contain
5
i.
Less than two defective items
ii.
One or more defective items
3.0.7% of total processors produced by a company are defective. A packed contains 200
processors. If a man buys 500 packets then what is his expectation regarding, i. No
processors are defect ii. Only2 processors are defected iii. Two or more than two processors
is defected.
4. A factory produces blades in packets of 100. The probability of a blade to be defective is
0.4%. Find the number of packets having two defected blades in a consignment of 20000
packets?
5. A manufacturer, who produces medicine bottles, finds that 0.1% of the bottles are defected.
The bottles are packed in boxes containing 500 bottles. A drug manufacturer buys 100 boxes.
How many boxes will he expected:
i) Without defected bottle?
ii) With only one defected?
iii) With at least two defected bottles?
1. In an industry 0.1% of total production is defected. What is the probability of having
defected
a ) 0 item, b) minimum 1 item, c) maximum 1 item out of 1000?
2. 0.5% of total processors produced by a company are defected. A packet contains 100
processors. If a
man buys 2000 packets then what is his expectation regarding, a) No processor is defected,
b) only
one processor is defected, c) 2 or more than two processors are defected?

3. A factory produces blades in packets of 100. The probability of a blade to be defected is

0.2%. Find
the number of packets having two defected blades in a consignment of 20,000 packets?
4. The following table gives the number of days in a 50-day period during which automobile
accidents
occurred in a city. Fit Poisson distribution to the data
No of accidents
0
1
2
3
4
Total days
No of days
21
18
7
3
1
50

Normal Distribution
1.The computer failure time X is assumed to follow normal distribution with mean= 0.5 hour
and s.d=0.75 hour. Find the probability that in a day the computer fails to work for
i.2 hours or more .ii. less than or equal to 2.5
2. The rainfall during rainy season is assumed to follow normal distribution with mean
rainfall of 5mm/day and with a s.d of 2 mm/day. Find the probability that , in a day
i. the rainfall will exceed10 mm.
ii. the rainfall will be within the limit 8 to 12mm.
3. The mount of arsenic in water (gm/litre) follows normal distribution with mean 8 and
variance 25. A sample of water is selected. Find the probability that, in the selected sample
The amount of arsenic exceeds 10 gms/litre
The amount of arsenic is in the limit 6 to 10 gms/litre
If such 6 samples are selected, what is the probability that in 4 samples the amount of
arsenic will be in the limit 6 to 10gms/litre?
4.As a result of tests on 20000 electric fans manufactured by a company, it was found that
lifetime of the fans was normally distributed with an average life of 2040 hours and s.d of
60 hours. On the basis of the information estimate the number of fans that is expected to run
for
More than 2150 hours and
Less than 1960 hours
Between 2995 to 2040
Example 01: 10% bulbs produced by a machine is defected. If sample of 400 bulbs are taken
randomly find the probability i) Maximum 30 bulbs are defected. ii) 30 to 50 bulbs are
defected. iii) More than 55 bulbs are defected.
Example 02: The distribution of monthly income of 400 employees follows normal
distribution with mean tk. 6000 and standard deviation tk. 1000. Find
i) the number of employees having income more than tk 7000
ii) the number of employees having income less than tk. 5500
iii) the least monthly income among the highest paid 100 employees.
Example 03: Dhaka City Corporation installs 10000 electric bulbs in the streets of Dhaka.
These lamps have an average life of 1850 burning hours with a standard deviation of 200
hours. Calculate the expected number of bulbs regarding the following life time.
a) More than 2000 hours
b) Less than 1600 hours
c) From 1600 to 2000 hours.

1. The mean height of 500 students is 50 inch and the variance is 25. If the height of the
students follow
normal distribution, then what is the probability that the height of a student a) less than 43
inch. b)
Greater than 55 inch, c) between 40 inch and 65 inch?
2. The average number in statistics of a group of students is 60 and the standard deviation is
8. If the numbers follow the normal distribution then find the probability that a student get
a) more than 70 b) between 50 and 80.
3. How many workers have a salary between tk 4000 and tk 6500 if the arithmetic mean is tk
5000 standard deviation is tk 1000 and number of workers is 15000 if the salary of the
workers is assumed to follow the normal law?
4. The average daily sales of 500 branch offices was tk 150 thousand and the standard
deviation is tk 15 thousand. Assuming the distribution to be normal, indicate how many
branches have sales between
i) tk 120 thousand and tk 145 thousand
ii) tk 140 thousand and tk 165 thousand.
5. The income of a group of 10000 people was found to be normally distributed with mean tk
1750 and standard deviation is tk 50. Find out the number of people whose incomes exceed
tk 1668 and tk 1832.
6. A workshop produces 2000 units per day. The average weight of units is 130 kg with a
standard deviation of 10 kg. Assuming normal distribution, how many units are expected to
weigh less than 142 kg?

X2-Distribution
1.A group of couples of child-bearing ages are classified according to wives education and
family planning adoption as follows:
Family
Level of education
planning
Illiterate
Primary
Secondary
Higher
Total
adoption
Yes
8
22
25
20
75
No
17
73
25
10
125
Total
25
95
50
30
200
Do you think that family planning adoption depends on level of education?
Central tendency
1. The following are the figures of daily profits earned by 1500 small companies during
2000- 2010.
5
Profit
No of Companies
200-400
50
400-600
125
600-800
280
800-1000
435
1000-1200
265
1200-1400
165
1400-1600
100

1600-1800
80
a. Calculate Mean, Median and Mode
b. Find profit below which 30% companies lie and comment.
c. Find the profit above which 60% companies lie and comment
d. Calculate the percentage of companies having less than tk.1216 and more than tk.
1216 daily profit and hence find the number of companies.
e. Calculate the limit of daily profits for the middle 60% companies and comment.
2.The mean monthly salary paid to all employees in a company is tk.
1600. The mean monthly salaries paid to technical & non-technical
employees are tk. 1800 & 1200 respectively. Determine the percentage of
technical & non-technical employees of the company.
3. The average weekly wage for a group of 25 persons working in a
factory was calculated to be tk. 378.40. It was later discovered that one
figure was misread as 160 instead of the correct value tk. 200. Calculate
average wage.
The mean of 200 observations was 50. Later on it was discovered that two
observations were wrongly read as 92 & 8 instead of 192 & 88. Find out
the correct mean.
4.The mean of marks in statistics of 100 students of a class was72. The
mean of marks of boys was 75, while their number was 70. Find out the
mean marks of girls in the class.
5.There are two branches of a company employing 100 & 80 employees
respectively. If arithmetic mean of the monthly salaries paid by two
branches are tk.4570 & tk. 6750 respectively. Find their combined
average salary.
6.Three groups of observations contain 8, 7 & 5 observations in the single
group formed by pooling the three groups.
7. Calculate the arithmetic mean of the observations 55,60,65,70,75,
,455
8. In factory the horse power of 300 machines are given below.
Horse
10-20
20-30
30-40
40-50
50-60
60-70
70-80
80-90
power
Number 10
13
25
80
75
66
23
8
of
machines
a) Calculate the average horsepower, median, mode.
b) Find the horsepower below which 30% machines lie.
c) Find the horsepower below which 60% machines lie.
d) Calculate the percentage of machines having more than 62
horsepower.
e) Calculate the limit of horsepower for the middle 50% machines.
9. The daily income of 360 rickshaw puller is given below.

Daily
150170190210230250270290income
170
190
210
230
250
270
290
310
Number 10
20
30
40
50
60
70
80
of
rickshaw
a) Calculate mean income, median income, model income and
comment.
b) Calculate the income below which 40% families lie & comment
c) Find the income above which 65% families lie & comment
d) How many families have incomes more than tk. 245 and less than
tk. 245?
e) What is the income limit of middle 50% families?
6. In a factory there are 75 skilled, 100 semi skilled and 150 unskilled workers. It has
been observed that on an average a unit length of a particular fabric is woven by a skilled
worker in 4 hours, by a semiskilled worker in 6 hours and an unskilled worker in 8 hours.
After a training of two years the semi-skilled workers are expected to become skilled
workers and an unskilled worker to become semi-skilled. How much time will be
required after two years of training for weaving unit length of fabric by an average?
7. The mean income of 30 persons is calculated as Tk.1500. But this average is calculated
with three wrong entries, where the entries were Tk.18, Tk.23 and Tk.20 instead of Tk.
82, 32 and200, respectively. Find the correct average income of the persons.
8. Four groups of observations contain 11, 10, 8 and 6 observations. Their geometric
means are 8.25, 10.50, 7.80 and 5.9 respectively. Find the combined geometric mean of
the observations.
9. The mean marks in business statistics of 210 students of a class were 90. The mean
marks of boys were 55, while the number of boys and girls were equal. Find out the mean
marks of girls in the class.
10. Following table shows the yearly profits (Millions) of 72 companies
in Bangladesh.
66
16
41
45
55
43
49
47
11
40
49
45
46
38
83
57
42
89
48
68
78
47
50
52
56
14
58
54
82
65
62
53
54
42
51
56
53
59
95
57
58
71
12
68
52
72
30
59
45
51
31
52
22
43
64
44
86
40
35
76
62
35
46
88
99
43
66
89
44
35
42
51
11. Following table shows the yearly profits (Millions) of 72 companies
in Bangladesh.
46
13
95
56
19
96
59
63
20
29
79
48
82
28
67
92
27
26
24
28
21
22
24
23
27
17
55
32
69
37
33
75
39
34
67
85
35
75
85
35
75
60
88
49
44
75
38
95
31
82
99
36
81
37
36
74
37
86
85
39
64
42
58
43
26
85
67
42
85
48
73
63

Dispersion
1.Suppose A and B are engaged in the same industry, their mean
monthly wages and standard deviations are as follows:
Factory

Average monthly
wages

Standard
deviation of
wages (in Tk.)

No. of wages
earner

4500

400

200

5000

300

150

1. Which factory (A or B) pays larger amount as monthly wages?

2. Which factory shows greater variability in the distribution of wages?
3. Which factory shows more consistency and reliability in the
distribution of wages and why?
4. What is the mean and standard deviation of the workers in two
factories taken together?
2. The numbers of duration days of 120 computers are given below. Find the standard
deviation, mean deviation and Coefficient of variation.
Duration days
5-15 15-25 25-35 35-45 45-55 55-65 65-75 75-85
Number
of
8
15
22
30
18
12
9
6
computers
3. The means and variances of duration days of microprocessors chips of three
companies are given below. Compare their durability and find out the best company.
First company
Second company
Third company
Mean
75
55
70
Variance
15
18
20
4. Suppose that the samples of polythene bags from two manufacturers A and B are tested by
a prospective buyer for bursting pressure, with the following results.
Bursting Pressure (lbs)
5-10
10-15
15-20
20-25
25-30
30-35
Number Company A
2
9
29
54
11
5
of Bags Company B
9
11
18
32
27
13
i) Which set of bags has the highest average bursting pressure?
ii) If prices are the same, which manufactures bags would be preferred by the buyer?
Why?
5. In two factories A and B engaged in the same industry the average monthly wages and
standard deviations are as follows.
Factory
Average monthly wages Standard deviation of
No. of wage
(in taka)
wages (in taka)
earner
A
4600
500
100

B
4900
400
80
i) Which factory A or B pays larger amount as monthly wages?
ii) Which factory shows greater variability in the distribution of wages?
iii) Which Factory shows more consistency and reliability in the distribution of wages
and why?
iv)What is the mean and standard deviation of all the workers in two factories taken
together?
6. A purchasing agent obtained samples of 60 watt bulbs from two companies. He had the
samples
tested in his own laboratory for length of life with the following results.
Length of life (in 1700-1900 1900-2100 2100-2300 2300-2500 2500-2700
hours)
Company A
10
16
20
8
6
Company B
3
40
12
3
2
a) Which companys bulbs do you think are better in terms of average life?
b) If prices of both types are the same, which companys bubs would you buy and
why?

Chi-square test
1.In a anti-malaria campaign in a certain area, quinine was administered
to 812 persons out of a total population of 3248. The number of fever
cases is shown below:

Treatment

Fever

No Fever

Total

Quinine

20

792

812

Non- quinine

220

2216

2436

Total

240

3008

3248

Discuss the usefulness of quinine in checking malaria.

2. .A group of couples of child-bearing ages are classified according to wives education
and family planning adoption as follows:
Family
Level of education
planning
Illiterate
Primary
Secondary
Higher
Total
adoption
Yes
8
22
25
20
75
No
17
73
25
10
125
Total
25
95
50
30
200
Do you think that family planning adoption depends on level of education?

3.A tobacco company claims that there is no relationship between

smoking and lung ailments. To investigate the claims a random sample of
300 males in age group of 40 to 50 are given medical test. The observed
results are tabulated below:
Lung ailment

No lung ailment

Total

Smokers

75

105

180

No-smoker

25

95

120

100

200

300

Total

On the basis of this information, can it be concluded that smoking and

lung ailments are indepeddent
Random Variable
X

p(x)

.2

.3

.1

.4

Calulate E(3X+7), V(4X-5)

Time series Analysis
1. Define time series analysis. What are the components of time series
analysis. Explain them.
2. How can we measure trend. Explain how can we measure trend using
method of moving average or method of semi average method.
3. Mention mathematical model of time series analysis.

4. Fit a trend line to the following data by the method of semiaverages:

Year

Sales of affirm A

Year

Sales of affirm A

2001

102

2005

108

2002

105

2006

116

2003

114

2007

112

2004

110

5. Calculate the 5-yearly moving average for the following data of a

number of commercial failures in a country during 2001 to 2008.

Year

No of failures

Year

No of failures

2001

23

2005

26

2002

26

2006

32

2003

32

2007

20

2004

20

2008

12